Core sector growth down 0.6 in October

Dashing hopes of a recovery,the output of eight core sector industries contracted by 0.6 per cent in October due to poor showing by coal,oil and gas sectors. The decline in output of eight core sector industries coal,crude oil,natural gas,refinery products,fertilisers,steel,cement,electricity follows a robust 8 per cent growth in September.

According to data released by the government on Monday,the output of eight infrastructure industries in April-October was a mere 2.6 per cent against 6.8 per cent in the same period of the last fiscal. The eight industries have a combined weight of about 38 per cent in the Index for Industrial Production. Commenting on the data,Crisils chief economist DK Joshi said the performance of the core sector is likely to remain subdued in the coming months as well.

Natural gas output contracted by 13.6 per cent in October year-on-year. Coal production declined by 3.9 per cent,while crude oil output was also poor with 0.8 per cent fall in the month under review.